Open Innovation at Fujitsu (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Open Innovation at Fujitsu (A)
This case study examines the open innovation journey at Fujitsu, a global information and communication technology company. The case ends with the location decision between Tokyo, Japan, downtown San Francisco or Sunnyvale, California, regarding establishing a small unit for the purpose of institutionalizing Fujitsu's open innovation journey. Mohi Ahmed, together with Mikito Kiname and Tango Matsumoto, embarked on the journey to strengthen Fujitsu's marketing and innovation platform in North America, and to transform the company's innovation culture by making the Japanese giant more open and leaner in its approach to innovation. In the past, Fujitsu struggled with opening up its innovation process in Silicon Valley: partnering with other organizations to integrate outside technology in its products and services; spinning out unexploited technology had proved challenging. With input from thinkers and practitioners inside and outside of Fujitsu, Ahmed identified the maker movement as a potential avenue to begin Fujitsu's open innovation journey because of the significance of Monozukuri (art and science of making) in the company's origin. He engaged with Mark Hatch, CEO of TechShop Inc., a fast-growing chain of member-based maker spaces, in a conversation about how companies could focus on "doing well by doing good," and they jointly initiated four projects on which they could collaborate. Ahmed planned to leverage these projects to transform Fujitsu's innovation culture by illustrating that the company could successfully engage in exploration with new external partners, and could move quickly into experimentation to accelerate learning and innovation. This case also shows how two very different organizations managed to team across boundaries. Doing so, it emphasizes the human side of inter-organizational collaboration by highlighting leadership activities that served to develop a shared vision, nurture psychological safety, leverage collective capabilities, and promote execution-as-learning.
Swot Analysis of "Open Innovation at Fujitsu (A)" written by Amy C. Edmondson, Jean-Francois Harvey includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Fujitsu's Fujitsu facing as an external strategic factors. Some of the topics covered in Open Innovation at Fujitsu (A) case study are - Strategic Management Strategies, Collaboration, Emerging markets, IT, Leadership, Organizational culture, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Open Innovation at Fujitsu (A) casestudy better are - – increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies,
central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Open Innovation at Fujitsu (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Open Innovation at Fujitsu (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fujitsu's Fujitsu, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fujitsu's Fujitsu 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 Open Innovation at Fujitsu (A) can be done for the following purposes –
1. Strategic planning using facts provided in Open Innovation at Fujitsu (A) case study
2. Improving business portfolio management of Fujitsu's Fujitsu
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 Fujitsu's Fujitsu
Strengths Open Innovation at Fujitsu (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fujitsu's Fujitsu in Open Innovation at Fujitsu (A) Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Fujitsu's Fujitsu digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Fujitsu's Fujitsu 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.
Ability to recruit top talent
– Fujitsu's Fujitsu is one of the leading recruiters in the industry. Managers in the Open Innovation at Fujitsu (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Fujitsu's Fujitsu 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.
Diverse revenue streams
– Fujitsu's Fujitsu is present in almost all the verticals within the industry. This has provided firm in Open Innovation at Fujitsu (A) 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
– Fujitsu's Fujitsu has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Fujitsu's Fujitsu 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 Fujitsu's Fujitsu in the sector have low bargaining power. Open Innovation at Fujitsu (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fujitsu's Fujitsu to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Fujitsu's Fujitsu 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 Fujitsu's Fujitsu is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Open Innovation at Fujitsu (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Fujitsu's Fujitsu has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Fujitsu's Fujitsu to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Fujitsu's Fujitsu 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 Amy C. Edmondson, Jean-Francois Harvey 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 Fujitsu's Fujitsu
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Fujitsu's Fujitsu does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Fujitsu's Fujitsu 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.
Operational resilience
– The operational resilience strategy in the Open Innovation at Fujitsu (A) 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.
Weaknesses Open Innovation at Fujitsu (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Open Innovation at Fujitsu (A) are -
Increasing silos among functional specialists
– The organizational structure of Fujitsu's Fujitsu is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Fujitsu's Fujitsu needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Fujitsu's Fujitsu to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Open Innovation at Fujitsu (A) 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 Open Innovation at Fujitsu (A) can leverage the sales team experience to cultivate customer relationships as Fujitsu's Fujitsu is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Fujitsu's Fujitsu is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Open Innovation at Fujitsu (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Open Innovation at Fujitsu (A) 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 Fujitsu's Fujitsu has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Fujitsu's Fujitsu, firm in the HBR case study Open Innovation at Fujitsu (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Open Innovation at Fujitsu (A) HBR case study mentions - Fujitsu's Fujitsu 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.
Capital Spending Reduction
– Even during the low interest decade, Fujitsu's Fujitsu 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.
No frontier risks strategy
– After analyzing the HBR case study Open Innovation at Fujitsu (A), 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.
Slow decision making process
– As mentioned earlier in the report, Fujitsu's Fujitsu 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. Fujitsu's Fujitsu 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 operating costs
– Compare to the competitors, firm in the HBR case study Open Innovation at Fujitsu (A) 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 Fujitsu's Fujitsu 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Fujitsu's Fujitsu 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.
Opportunities Open Innovation at Fujitsu (A) | 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 Open Innovation at Fujitsu (A) are -
Learning at scale
– Online learning technologies has now opened space for Fujitsu's Fujitsu 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 Fujitsu's Fujitsu has opened avenues for new revenue streams for the organization in the industry. This can help Fujitsu's Fujitsu to build a more holistic ecosystem as suggested in the Open Innovation at Fujitsu (A) case study. Fujitsu's Fujitsu 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 Fujitsu's Fujitsu 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.
Loyalty marketing
– Fujitsu's Fujitsu 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Fujitsu's Fujitsu 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Fujitsu's Fujitsu is facing challenges because of the dominance of functional experts in the organization. Open Innovation at Fujitsu (A) 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Fujitsu's Fujitsu 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, Open Innovation at Fujitsu (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Fujitsu's Fujitsu 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 Open Innovation at Fujitsu (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Fujitsu's Fujitsu to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Fujitsu's Fujitsu 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.
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 Fujitsu's Fujitsu in the consumer business. Now Fujitsu's Fujitsu can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Fujitsu's Fujitsu can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Developing new processes and practices
– Fujitsu's Fujitsu 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.
Leveraging digital technologies
– Fujitsu's Fujitsu 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.
Threats Open Innovation at Fujitsu (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Open Innovation at Fujitsu (A) are -
Regulatory challenges
– Fujitsu's Fujitsu 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.
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 Fujitsu's Fujitsu.
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 Fujitsu's Fujitsu business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Fujitsu's Fujitsu has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Fujitsu's Fujitsu 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
– Fujitsu's Fujitsu 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. Fujitsu's Fujitsu can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Increasing wage structure of Fujitsu's Fujitsu
– 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 Fujitsu's Fujitsu.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Fujitsu's Fujitsu 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Fujitsu's Fujitsu 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 Open Innovation at Fujitsu (A) .
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 Fujitsu's Fujitsu in the Strategy & Execution sector and impact the bottomline of the organization.
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. Fujitsu's Fujitsu 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 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. Fujitsu's Fujitsu 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
– Fujitsu's Fujitsu 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Open Innovation at Fujitsu (A), Fujitsu's Fujitsu 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 .
Weighted SWOT Analysis of Open Innovation at Fujitsu (A) 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 Open Innovation at Fujitsu (A) 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 Open Innovation at Fujitsu (A) 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 Open Innovation at Fujitsu (A) 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 Open Innovation at Fujitsu (A) 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 Fujitsu's Fujitsu needs to make to build a sustainable competitive advantage.