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 - – digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , there is backlash against globalization,
customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, 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.
Superior customer experience
– The customer experience strategy of Kel366 Bp's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
Strong track record of project management
– Kel366 Bp's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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.
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.
Diverse revenue streams
– Kel366 Bp's is present in almost all the verticals within the industry. This has provided firm in BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team 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.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Kel366 Bp's are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Training and development
– 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.
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 -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team, it seems that the employees of Kel366 Bp's 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.
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.
Skills based hiring
– The stress on hiring functional specialists at Kel366 Bp's 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 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.
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.
Interest costs
– Compare to the competition, Kel366 Bp's 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.
Slow decision making process
– As mentioned earlier in the report, Kel366 Bp's 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. Kel366 Bp's 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.
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.
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.
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.
Aligning sales with marketing
– It come across in the case study BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team 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 BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team can leverage the sales team experience to cultivate customer relationships as Kel366 Bp's is planning to shift buying processes online.
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 -
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.
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.
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.
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.
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. Kel366 Bp's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Kel366 Bp's 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 Kel366 Bp's to hire the very best people irrespective of their geographical location.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Kel366 Bp's can use these opportunities to build new business models that can help the communities that Kel366 Bp's operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Building a culture of innovation
– managers at Kel366 Bp's 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.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Kel366 Bp's 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, BP's Office of the Chief Technology Officer (B): Driving Open Innovation through an Advocate Team, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 -
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.
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 Kel366 Bp's in the Technology & Operations sector and impact the bottomline of the organization.
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.
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.
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.
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.
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 Kel366 Bp's.
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.
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.
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.
Stagnating economy with rate increase
– Kel366 Bp's 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.
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.
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.
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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