Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management
This case describes the implementation and subsequent failure of an innovative system installed in the bars of Alvalade XXI, the recently built football stadium in Lisbon, Portugal. Casa XXI, the company running the bars, had entrusted the project to an IT supplier who had limited experience with large systems. During the inauguration, the system failed spectacularly creating a chaotic situation. The fiasco meant not only a financial loss, but also a blow to the reputation of the company. The management blamed the supplier for the failure. The supplier, however, claimed that the problem was not technical but organizational, that is, poor planning of operations. Subsequent tests were inconclusive and failed to restore trust. At the end of the case, the CEO is considering the possibility to switch to an alternative supplier. He also wonders what they could have done to manage the project and the associated risks more effectively. The case highlights risk and project management issues in large systems implementations. The discussion can be structured around cost/benefit analysis, risk assessment, and project management. Relevant dimensions include: company operations, project scope, degree of innovation, technology used, system architecture, supplier selection, and project organization. In addition, the case raises governance questions: Who is responsible for the project? Even if the project is outsourced, how should the roles and responsibilities be apportioned between the company and the IT supplier(s)? What mechanisms should be used to plan and execute IT projects, and control their risks?
Swot Analysis of "Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management" written by Ramon O'Callaghan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Xxi Supplier facing as an external strategic factors. Some of the topics covered in Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management case study are - Strategic Management Strategies, IT, Operations management, Project management, Risk management and Technology & Operations.
Some of the macro environment factors that can be used to understand the Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management casestudy better are - – wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs,
cloud computing is disrupting traditional business models, there is backlash against globalization, etc
Introduction to SWOT Analysis of Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Xxi Supplier, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Xxi Supplier 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 Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management can be done for the following purposes –
1. Strategic planning using facts provided in Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management case study
2. Improving business portfolio management of Xxi Supplier
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 Xxi Supplier
Strengths Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Xxi Supplier in Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Xxi Supplier 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.
Effective Research and Development (R&D)
– Xxi Supplier has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Xxi Supplier in the sector have low bargaining power. Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Xxi Supplier 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 Xxi Supplier digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Xxi Supplier 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.
Successful track record of launching new products
– Xxi Supplier has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Xxi Supplier 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.
Highly skilled collaborators
– Xxi Supplier 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 Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Xxi Supplier
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Xxi Supplier does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Xxi Supplier has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management 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 switching costs
– The high switching costs that Xxi Supplier 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.
Ability to recruit top talent
– Xxi Supplier is one of the leading recruiters in the industry. Managers in the Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Xxi Supplier 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 Xxi Supplier is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Technology & Operations industry
– Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management firm has clearly differentiated products in the market place. This has enabled Xxi Supplier to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Xxi Supplier to invest into research and development (R&D) and innovation.
Weaknesses Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management are -
Slow decision making process
– As mentioned earlier in the report, Xxi Supplier 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. Xxi Supplier 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 Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management, it seems that the employees of Xxi Supplier 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.
Capital Spending Reduction
– Even during the low interest decade, Xxi Supplier 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.
Low market penetration in new markets
– Outside its home market of Xxi Supplier, firm in the HBR case study Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Xxi Supplier products
– To increase the profitability and margins on the products, Xxi Supplier needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Xxi Supplier is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Xxi Supplier needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Xxi Supplier to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Xxi Supplier needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management 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 Xxi Supplier has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management, is just above the industry average. Xxi Supplier 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 strategic competitive environment developments
– As Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management HBR case study mentions - Xxi Supplier 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 operating costs
– Compare to the competitors, firm in the HBR case study Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management 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 Xxi Supplier 's lucrative customers.
Opportunities Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management | 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 Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Xxi Supplier 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.
Building a culture of innovation
– managers at Xxi Supplier 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.
Manufacturing automation
– Xxi Supplier 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Xxi Supplier can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Xxi Supplier 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.
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 Xxi Supplier in the consumer business. Now Xxi Supplier can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Xxi Supplier 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.
Buying journey improvements
– Xxi Supplier can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Developing new processes and practices
– Xxi Supplier 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Xxi Supplier 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, Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Xxi Supplier can use these opportunities to build new business models that can help the communities that Xxi Supplier operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Xxi Supplier is facing challenges because of the dominance of functional experts in the organization. Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management 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.
Better consumer reach
– The expansion of the 5G network will help Xxi Supplier to increase its market reach. Xxi Supplier 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.
Threats Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management, Xxi Supplier 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 .
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. Xxi Supplier 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Xxi Supplier with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Xxi Supplier.
Environmental challenges
– Xxi Supplier 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. Xxi Supplier can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Regulatory challenges
– Xxi Supplier 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.
High dependence on third party suppliers
– Xxi Supplier 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Xxi Supplier 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.
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 Xxi Supplier business can come under increasing regulations regarding data privacy, data security, etc.
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. Xxi Supplier can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Xxi Supplier
– 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 Xxi Supplier.
Consumer confidence and its impact on Xxi Supplier 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 Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management 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 Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management 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 Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management 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 Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management 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 Fixing the Payment System at Alvalade XXI: A Case on IT Project Risk Management 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 Xxi Supplier needs to make to build a sustainable competitive advantage.