Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution
Faced with the constant pressure from internal customers, who want answers to their problems on increasingly short order, based on the best possible expertise and at the lowest cost, Hydro-Quebec's IT Solutions Department (ITSD) decided to undertake a twofold structural change aimed at: 1) decentralizing the IT specialists to the IT business units; and 2) establishing a horizontal approach to knowledge management, which would allow the now decentralized specialists to maintain and develop their collective expertise remotely. This case study is written in three parts: (A) the issue that led ITSD to such a change; (B) the solution chosen; and (C) the implementation of this significant change.
Authors :: Gilbert Alexandre, Line Dube, Real Jacob
Swot Analysis of "Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution" written by Gilbert Alexandre, Line Dube, Real Jacob includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Itsd Hydro facing as an external strategic factors. Some of the topics covered in Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution case study are - Strategic Management Strategies, IT, Organizational structure, Project management and Technology & Operations.
Some of the macro environment factors that can be used to understand the Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution casestudy better are - – cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, talent flight as more people leaving formal jobs, increasing energy prices, supply chains are disrupted by pandemic , there is increasing trade war between United States & China,
increasing transportation and logistics costs, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Itsd Hydro, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Itsd Hydro 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 Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution can be done for the following purposes –
1. Strategic planning using facts provided in Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution case study
2. Improving business portfolio management of Itsd Hydro
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Itsd Hydro
Strengths Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Itsd Hydro in Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Itsd Hydro are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High brand equity
– Itsd Hydro has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Itsd Hydro to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Itsd Hydro is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Itsd Hydro 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 Gilbert Alexandre, Line Dube, Real Jacob 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.
Training and development
– Itsd Hydro has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Itsd Hydro digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Itsd Hydro 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.
Low bargaining power of suppliers
– Suppliers of Itsd Hydro in the sector have low bargaining power. Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Itsd Hydro to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Itsd Hydro is one of the leading recruiters in the industry. Managers in the Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution 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 Itsd Hydro 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.
Operational resilience
– The operational resilience strategy in the Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution 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.
Sustainable margins compare to other players in Technology & Operations industry
– Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution firm has clearly differentiated products in the market place. This has enabled Itsd Hydro to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Itsd Hydro to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Itsd Hydro has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Itsd Hydro 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.
Weaknesses Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution are -
Aligning sales with marketing
– It come across in the case study Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution 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 Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution can leverage the sales team experience to cultivate customer relationships as Itsd Hydro is planning to shift buying processes online.
Products dominated business model
– Even though Itsd Hydro 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 - Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution, it seems that company is thinking about the frontier risks that can impact Technology & Operations 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.
Lack of clear differentiation of Itsd Hydro products
– To increase the profitability and margins on the products, Itsd Hydro needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Itsd Hydro has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution, it seems that the employees of Itsd Hydro 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.
Low market penetration in new markets
– Outside its home market of Itsd Hydro, firm in the HBR case study Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Itsd Hydro 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution 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 Itsd Hydro 's lucrative customers.
Need for greater diversity
– Itsd Hydro 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.
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 Itsd Hydro supply chain. Even after few cautionary changes mentioned in the HBR case study - Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Itsd Hydro vulnerable to further global disruptions in South East Asia.
Opportunities Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution | 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 Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution are -
Manufacturing automation
– Itsd Hydro can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Itsd Hydro 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, Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Itsd Hydro is facing challenges because of the dominance of functional experts in the organization. Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution 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.
Developing new processes and practices
– Itsd Hydro can develop new processes and procedures in Technology & Operations 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.
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. Itsd Hydro can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Itsd Hydro 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Itsd Hydro can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Itsd Hydro 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 Technology & Operations segment.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Itsd Hydro 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 Itsd Hydro to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Itsd Hydro 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 Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Itsd Hydro to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Itsd Hydro can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Itsd Hydro in the consumer business. Now Itsd Hydro can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Itsd Hydro can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution are -
Consumer confidence and its impact on Itsd Hydro 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. Itsd Hydro needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Itsd Hydro with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Itsd Hydro in the Technology & Operations sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Itsd Hydro has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Itsd Hydro needs to keep up with the evolution of technology in the Technology & Operations 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.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Itsd Hydro 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 Itsd Hydro in the Technology & Operations industry. The Technology & Operations 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 Itsd Hydro is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Itsd Hydro business can come under increasing regulations regarding data privacy, data security, etc.
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 Itsd Hydro.
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.
Environmental challenges
– Itsd Hydro 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. Itsd Hydro can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Regulatory challenges
– Itsd Hydro 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 Technology & Operations industry regulations.
Weighted SWOT Analysis of Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution 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 Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution 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 Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution 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 Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution 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 Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution 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 Itsd Hydro needs to make to build a sustainable competitive advantage.
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