Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (A) - The Issue 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 (A) - The Issue
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 (A) - The Issue" 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 (A) - The Issue 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 (A) - The Issue casestudy better are - – talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, wage bills are increasing, technology disruption,
challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (A) - The Issue
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 (A) - The Issue 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 (A) - The Issue 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 (A) - The Issue 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 (A) - The Issue | 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 (A) - The Issue Harvard Business Review case study are -
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.
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.
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 (A) - The Issue 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.
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.
Highly skilled collaborators
– Itsd Hydro has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (A) - The Issue HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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 (A) - The Issue 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.
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.
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 (A) - The Issue Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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 (A) - The Issue are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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 (A) - The Issue Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
Weaknesses Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (A) - The Issue | 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 (A) - The Issue 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.
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 (A) - The Issue 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (A) - The Issue, in the dynamic environment Itsd Hydro has struggled to respond to the nimble upstart competition. Itsd Hydro has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (A) - The Issue, is just above the industry average. Itsd Hydro needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Itsd Hydro is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (A) - The Issue can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 (A) - The Issue should strive to include more intangible value offerings along with its core products and services.
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.
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 (A) - The Issue 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 (A) - The Issue can leverage the sales team experience to cultivate customer relationships as Itsd Hydro is planning to shift buying processes online.
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 (A) - The Issue, 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 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.
Opportunities Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (A) - The Issue | 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 (A) - The Issue are -
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 (A) - The Issue 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.
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.
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 (A) - The Issue - 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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Itsd Hydro can use these opportunities to build new business models that can help the communities that Itsd Hydro operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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.
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.
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.
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.
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.
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 (A) - The Issue 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.
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.
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 (A) - The Issue 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 (A) - The Issue are -
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.
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 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.
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.
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.
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 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.
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.
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.
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.
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 (A) - The Issue .
Weighted SWOT Analysis of Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (A) - The Issue 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 (A) - The Issue 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 (A) - The Issue 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 (A) - The Issue 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 (A) - The Issue 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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