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 - – increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, technology disruption, central banks are concerned over increasing inflation, increasing commodity prices, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, 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 -
Ability to lead change in Technology & Operations field
– Itsd Hydro is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Itsd Hydro in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
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.
Diverse revenue streams
– Itsd Hydro is present in almost all the verticals within the industry. This has provided firm in Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution 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.
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.
Learning organization
- Itsd Hydro 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 Itsd Hydro is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution Harvard Business Review case study emphasize – knowledge, initiative, 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.
Organizational Resilience of Itsd Hydro
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Itsd Hydro does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
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.
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 -
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.
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.
Capital Spending Reduction
– Even during the low interest decade, Itsd Hydro 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 cash cycle compare to competitors
Itsd Hydro 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.
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.
High bargaining power of channel partners
– Because of the regulatory requirements, Gilbert Alexandre, Line Dube, Real Jacob suggests that, Itsd Hydro 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.
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.
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.
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.
Slow decision making process
– As mentioned earlier in the report, Itsd Hydro 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. Itsd Hydro 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.
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.
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 -
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.
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.
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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Itsd Hydro 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. Itsd Hydro 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.
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.
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.
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 Itsd Hydro 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.
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.
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.
Loyalty marketing
– Itsd Hydro 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.
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.
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 -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution, Itsd Hydro may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Stagnating economy with rate increase
– Itsd Hydro 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
– 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.
Increasing wage structure of Itsd Hydro
– 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 Itsd Hydro.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Itsd Hydro 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 Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution .
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.
High dependence on third party suppliers
– Itsd Hydro 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.
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.
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.
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 Itsd Hydro business can come under increasing regulations regarding data privacy, data security, etc.
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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