Swot Analysis of "BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team" written by Robert C. Wolcott, Michael J. Lippitz includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Kel366 Bp's facing as an external strategic factors. Some of the topics covered in BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team case study are - Strategic Management Strategies, Knowledge management, Organizational structure, Project management, Research & development and Technology & Operations.
Some of the macro environment factors that can be used to understand the BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team casestudy better are - – geopolitical disruptions, there is backlash against globalization, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, wage bills are increasing, technology disruption,
digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kel366 Bp's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kel366 Bp's 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 BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team can be done for the following purposes –
1. Strategic planning using facts provided in BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team case study
2. Improving business portfolio management of Kel366 Bp's
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 Kel366 Bp's
Strengths BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kel366 Bp's in BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Kel366 Bp's in the sector have low bargaining power. BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Kel366 Bp's 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 Kel366 Bp's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Kel366 Bp's 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.
Ability to recruit top talent
– Kel366 Bp's is one of the leading recruiters in the industry. Managers in the BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Technology & Operations industry
– BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team firm has clearly differentiated products in the market place. This has enabled Kel366 Bp's to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Kel366 Bp's to invest into research and development (R&D) and innovation.
Learning organization
- Kel366 Bp's 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 Kel366 Bp's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Kel366 Bp's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team 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.
Ability to lead change in Technology & Operations field
– Kel366 Bp's 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 Kel366 Bp's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Kel366 Bp's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Kel366 Bp's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Kel366 Bp's 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 BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Kel366 Bp's 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 Robert C. Wolcott, Michael J. Lippitz 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.
Successful track record of launching new products
– Kel366 Bp's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Kel366 Bp's 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 Kel366 Bp's 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.
Weaknesses BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team are -
Need for greater diversity
– Kel366 Bp's has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team 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 Kel366 Bp's has relatively successful track record of launching new products.
Lack of clear differentiation of Kel366 Bp's products
– To increase the profitability and margins on the products, Kel366 Bp's needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team HBR case study mentions - Kel366 Bp's 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 Kel366 Bp's supply chain. Even after few cautionary changes mentioned in the HBR case study - BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Kel366 Bp's vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert C. Wolcott, Michael J. Lippitz suggests that, Kel366 Bp's 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team, is just above the industry average. Kel366 Bp's 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team, in the dynamic environment Kel366 Bp's has struggled to respond to the nimble upstart competition. Kel366 Bp's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Kel366 Bp's 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.
Increasing silos among functional specialists
– The organizational structure of Kel366 Bp's is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Kel366 Bp's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Kel366 Bp's to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Kel366 Bp's 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.
Opportunities BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team | 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 BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team are -
Buying journey improvements
– Kel366 Bp's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team 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.
Manufacturing automation
– Kel366 Bp's 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.
Learning at scale
– Online learning technologies has now opened space for Kel366 Bp's 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.
Better consumer reach
– The expansion of the 5G network will help Kel366 Bp's to increase its market reach. Kel366 Bp's 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.
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 Kel366 Bp's in the consumer business. Now Kel366 Bp's can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Kel366 Bp's is facing challenges because of the dominance of functional experts in the organization. BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team 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.
Creating value in data economy
– The success of analytics program of Kel366 Bp's has opened avenues for new revenue streams for the organization in the industry. This can help Kel366 Bp's to build a more holistic ecosystem as suggested in the BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team case study. Kel366 Bp's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Kel366 Bp's 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 BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Kel366 Bp's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Kel366 Bp's 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Kel366 Bp's 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Kel366 Bp's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Kel366 Bp's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Kel366 Bp's in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Threats BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team are -
Shortening product life cycle
– it is one of the major threat that Kel366 Bp's is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Technology acceleration in Forth Industrial Revolution
– Kel366 Bp's has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Kel366 Bp's 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Kel366 Bp's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Kel366 Bp's 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. Kel366 Bp's can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Kel366 Bp's 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.
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. Kel366 Bp's 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. Kel366 Bp's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Kel366 Bp's 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.
High dependence on third party suppliers
– Kel366 Bp's 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team, Kel366 Bp's 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 .
Increasing wage structure of Kel366 Bp's
– 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 Kel366 Bp's.
Consumer confidence and its impact on Kel366 Bp's 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.
Weighted SWOT Analysis of BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team 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 BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team 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 BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team 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 BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team 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 BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team 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 Kel366 Bp's needs to make to build a sustainable competitive advantage.
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