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

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

Topics :: Technology & Operations

Tags :: IT, Organizational structure, Project management, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

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 - – there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, technology disruption, increasing household debt because of falling income levels, wage bills are increasing, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, increasing commodity prices, etc

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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.

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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

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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 -

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.

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.

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.

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.

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.

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 (A) - The Issue 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.

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.

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.

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.

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.

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 (A) - The Issue 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.

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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.

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.

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.

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.

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 (A) - The Issue, 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.

Slow to strategic competitive environment developments

– As Managing IT Resources in the Context of a Strategic Redeployment: A Hydro-Quebec Case Study (A) - The Issue 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.

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 (A) - The Issue, 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.

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.

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.

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.

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.

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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 -

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.

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 (A) - The Issue case study. Itsd Hydro can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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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.

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 (A) - The Issue, 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 .

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.

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.

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.

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.

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 .

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 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.

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.

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.

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.

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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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