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 - – supply chains are disrupted by pandemic , increasing commodity prices, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy,
wage bills are increasing, geopolitical disruptions, 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 -
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.
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.
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.
Superior customer experience
– The customer experience strategy of Itsd Hydro in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Itsd Hydro is one of the most innovative firm in sector. Manager in Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
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.
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.
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 -
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Itsd Hydro 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.
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.
Slow to strategic competitive environment developments
– As Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution HBR case study mentions - Itsd Hydro 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.
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.
Increasing silos among functional specialists
– The organizational structure of Itsd Hydro is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Itsd Hydro needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Itsd Hydro to focus more on services rather than just following the product oriented approach.
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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution 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 Itsd Hydro has relatively successful track record of launching new products.
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.
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 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.
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 -
Leveraging digital technologies
– Itsd Hydro 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.
Better consumer reach
– The expansion of the 5G network will help Itsd Hydro to increase its market reach. Itsd Hydro 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.
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.
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.
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.
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.
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.
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.
Creating value in data economy
– The success of analytics program of Itsd Hydro has opened avenues for new revenue streams for the organization in the industry. This can help Itsd Hydro to build a more holistic ecosystem as suggested in the Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution case study. Itsd Hydro can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Itsd Hydro 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.
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 -
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.
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.
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 .
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.
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.
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. Itsd Hydro 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.
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.
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 .
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.
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.
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.
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.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (B) - The Solution