Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena

In the summer of 2010, the members of the business development team of Target Systems were carefully considering the possibility of entering the Electronic Health Information (EHI) systems arena. The company had both breadth and depth of experience in providing logistics, project management and information technology (IT) services to clients in the public and private sector. Although the employees of Target Systems were experts in a full range of IT services, no one in the company had deep expertise about the way IT applications were being used to manage patient care or administer health care organizations. The lack of expertise implied that a movement by Target Systems into the EHI systems arena would call for the company to simultaneously develop new products and services for a new set of clients -- to engage in growth by related diversification. That strategy would stand in contrast to the growth by concentration strategy the team had employed throughout company history. To pursue a diversification strategy the team would have to decide if it should provide services to regional health information organizations, hospitals or individual physicians' practices. It would also have to decide whether it would cultivate new capabilities by investing in internal development or by seeking a strategic partner that was already operating in the arena. Ultimately, the way the business development team weighed the opportunities versus the challenges of adopting a new growth strategy in the context of a still uncertain external environment would strongly influence its decision as to whether or not the company should enter this new arena.

Authors :: Michael J. Fratantuono, David M Sarcone

Topics :: Strategy & Execution

Tags :: , SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena" written by Michael J. Fratantuono, David M Sarcone includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Arena Ehi facing as an external strategic factors. Some of the topics covered in Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena case study are - Strategic Management Strategies, and Strategy & Execution.

Some of the macro environment factors that can be used to understand the Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena casestudy better are - – increasing energy prices, wage bills are increasing, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, geopolitical disruptions, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, etc

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Introduction to SWOT Analysis of Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Arena Ehi, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Arena Ehi 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena can be done for the following purposes –
1. Strategic planning using facts provided in Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena case study
2. Improving business portfolio management of Arena Ehi
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 Arena Ehi

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Strengths Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Arena Ehi in Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena Harvard Business Review case study are -

Training and development

– Arena Ehi has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena 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.

Learning organization

- Arena Ehi 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 Arena Ehi is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Analytics focus

– Arena Ehi 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 Michael J. Fratantuono, David M Sarcone 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 Arena Ehi

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Arena Ehi does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Strong track record of project management

– Arena Ehi is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Successful track record of launching new products

– Arena Ehi has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Arena Ehi 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.

Digital Transformation in Strategy & Execution segment

- digital transformation varies from industry to industry. For Arena Ehi digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Arena Ehi 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.

High brand equity

– Arena Ehi has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Arena Ehi to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Cross disciplinary teams

– Horizontal connected teams at the Arena Ehi 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.

Diverse revenue streams

– Arena Ehi is present in almost all the verticals within the industry. This has provided firm in Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena 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.

Sustainable margins compare to other players in Strategy & Execution industry

– Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena firm has clearly differentiated products in the market place. This has enabled Arena Ehi to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Arena Ehi to invest into research and development (R&D) and innovation.

Operational resilience

– The operational resilience strategy in the Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena 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.

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Weaknesses Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena are -

No frontier risks strategy

– After analyzing the HBR case study Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena, 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.

Need for greater diversity

– Arena Ehi 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.

Workers concerns about automation

– As automation is fast increasing in the segment, Arena Ehi 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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena, is just above the industry average. Arena Ehi needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Arena Ehi is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Capital Spending Reduction

– Even during the low interest decade, Arena Ehi 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 bargaining power of channel partners

– Because of the regulatory requirements, Michael J. Fratantuono, David M Sarcone suggests that, Arena Ehi 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.

Slow to strategic competitive environment developments

– As Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena HBR case study mentions - Arena Ehi 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.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena, it seems that the employees of Arena Ehi don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Arena Ehi supply chain. Even after few cautionary changes mentioned in the HBR case study - Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Arena Ehi vulnerable to further global disruptions in South East Asia.

Increasing silos among functional specialists

– The organizational structure of Arena Ehi is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Arena Ehi needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Arena Ehi to focus more on services rather than just following the product oriented approach.

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Opportunities Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena | 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 Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena are -

Leveraging digital technologies

– Arena Ehi 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.

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 Arena Ehi 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.

Better consumer reach

– The expansion of the 5G network will help Arena Ehi to increase its market reach. Arena Ehi 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Arena Ehi 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, Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena, 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, Arena Ehi can use these opportunities to build new business models that can help the communities that Arena Ehi operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.

Using analytics as competitive advantage

– Arena Ehi 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 Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Arena Ehi to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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. Arena Ehi can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Arena Ehi can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Arena Ehi 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 Arena Ehi to hire the very best people irrespective of their geographical location.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Arena Ehi is facing challenges because of the dominance of functional experts in the organization. Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena 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.

Manufacturing automation

– Arena Ehi 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

– Arena Ehi 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.

Loyalty marketing

– Arena Ehi 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.

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Threats Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena are -

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 Arena Ehi business can come under increasing regulations regarding data privacy, data security, etc.

Consumer confidence and its impact on Arena Ehi 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.

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.

Stagnating economy with rate increase

– Arena Ehi 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.

Environmental challenges

– Arena Ehi 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. Arena Ehi can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.

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 Arena Ehi in the Strategy & Execution sector and impact the bottomline of the organization.

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. Arena Ehi can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Arena Ehi 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.

Shortening product life cycle

– it is one of the major threat that Arena Ehi is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena, Arena Ehi 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 .

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. Arena Ehi 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.

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 Arena Ehi with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

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Weighted SWOT Analysis of Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena 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 Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena 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 Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena 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 Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena 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 Target Systems: Challenges and Opportunities in the Electronic Health Information System Arena 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 Arena Ehi needs to make to build a sustainable competitive advantage.

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