Telemonitoring at Visiting Nurse Health System SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Telemonitoring at Visiting Nurse Health System
The Telemonitoring at Visiting Nurse Health System case presents one home healthcare organization's efforts to use telemonitoring to improve the quality of care provided to at-risk patients who were discharged from hospitals and needed home care. After two years of using the Health Buddy system for telemonitoring at-risk patients, Mark Oshnock, President of Visiting Nurse Health System (VNHS) must decide whether to invest in buying more Health Buddy units. While Oshnock believed that there were real benefits associated with telemonitoring, he was having difficulty quantifying those benefits and he was concerned about VNHS' ability to continue investing resources in telemonitoring given the realities of the health care reimbursement environment in which they operated. While several studies had demonstrated the benefits of telemonitoring, Oshnock felt that the long-term benefits accruing to the health system as a whole were not immediately quantifiable or visible to the hospitals and insurance companies. Without external support for the telemonitoring initiative from insurance companies, it would be difficult for VNHS to keep up the momentum and ramp up telemonitoring through additional purchases of Health Buddy units. From a purely financial standpoint, such an investment would be very difficult for VNHS to justify. The irony was that with the new regulatory pressures and increased focus on preventative healthcare, telemonitoring pointed to an effective tool in managing and reducing acute care hospitalizations. However, balancing these benefits against limited financial support from other key players in the health care system would be challenging.
Authors :: F. Warren McFarlan, Mark Keil, Mala Kaul
Swot Analysis of "Telemonitoring at Visiting Nurse Health System" written by F. Warren McFarlan, Mark Keil, Mala Kaul includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Telemonitoring Vnhs facing as an external strategic factors. Some of the topics covered in Telemonitoring at Visiting Nurse Health System case study are - Strategic Management Strategies, Project management and Technology & Operations.
Some of the macro environment factors that can be used to understand the Telemonitoring at Visiting Nurse Health System casestudy better are - – there is increasing trade war between United States & China, central banks are concerned over increasing inflation, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies,
challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Telemonitoring at Visiting Nurse Health System
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Telemonitoring at Visiting Nurse Health System case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Telemonitoring Vnhs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Telemonitoring Vnhs 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 Telemonitoring at Visiting Nurse Health System can be done for the following purposes –
1. Strategic planning using facts provided in Telemonitoring at Visiting Nurse Health System case study
2. Improving business portfolio management of Telemonitoring Vnhs
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 Telemonitoring Vnhs
Strengths Telemonitoring at Visiting Nurse Health System | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Telemonitoring Vnhs in Telemonitoring at Visiting Nurse Health System Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Telemonitoring Vnhs in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Telemonitoring Vnhs in the sector have low bargaining power. Telemonitoring at Visiting Nurse Health System has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Telemonitoring Vnhs to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Telemonitoring at Visiting Nurse Health System Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
High switching costs
– The high switching costs that Telemonitoring Vnhs 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.
Learning organization
- Telemonitoring Vnhs 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 Telemonitoring Vnhs is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Telemonitoring at Visiting Nurse Health System Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Telemonitoring Vnhs is present in almost all the verticals within the industry. This has provided firm in Telemonitoring at Visiting Nurse Health System 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.
Cross disciplinary teams
– Horizontal connected teams at the Telemonitoring Vnhs 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.
High brand equity
– Telemonitoring Vnhs has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Telemonitoring Vnhs to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Telemonitoring Vnhs 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 F. Warren McFarlan, Mark Keil, Mala Kaul 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
– Telemonitoring Vnhs has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Telemonitoring Vnhs 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.
Effective Research and Development (R&D)
– Telemonitoring Vnhs 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 Telemonitoring at Visiting Nurse Health System - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Telemonitoring Vnhs is one of the most innovative firm in sector. Manager in Telemonitoring at Visiting Nurse Health System Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Telemonitoring at Visiting Nurse Health System | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Telemonitoring at Visiting Nurse Health System are -
Slow decision making process
– As mentioned earlier in the report, Telemonitoring Vnhs 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. Telemonitoring Vnhs 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.
Slow to strategic competitive environment developments
– As Telemonitoring at Visiting Nurse Health System HBR case study mentions - Telemonitoring Vnhs 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 star products
– The top 2 products and services of the firm as mentioned in the Telemonitoring at Visiting Nurse Health System 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 Telemonitoring Vnhs has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Telemonitoring at Visiting Nurse Health System 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 Telemonitoring at Visiting Nurse Health System can leverage the sales team experience to cultivate customer relationships as Telemonitoring Vnhs is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Telemonitoring at Visiting Nurse Health System, it seems that the employees of Telemonitoring Vnhs 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Telemonitoring at Visiting Nurse Health System, in the dynamic environment Telemonitoring Vnhs has struggled to respond to the nimble upstart competition. Telemonitoring Vnhs has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Telemonitoring at Visiting Nurse Health System 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 Telemonitoring Vnhs 's lucrative customers.
Need for greater diversity
– Telemonitoring Vnhs 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 cash cycle compare to competitors
Telemonitoring Vnhs 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.
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 Telemonitoring Vnhs supply chain. Even after few cautionary changes mentioned in the HBR case study - Telemonitoring at Visiting Nurse Health System, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Telemonitoring Vnhs vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, F. Warren McFarlan, Mark Keil, Mala Kaul suggests that, Telemonitoring Vnhs is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Opportunities Telemonitoring at Visiting Nurse Health System | 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 Telemonitoring at Visiting Nurse Health System 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 Telemonitoring Vnhs in the consumer business. Now Telemonitoring Vnhs 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, Telemonitoring Vnhs is facing challenges because of the dominance of functional experts in the organization. Telemonitoring at Visiting Nurse Health System 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.
Buying journey improvements
– Telemonitoring Vnhs can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Telemonitoring at Visiting Nurse Health System 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.
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. Telemonitoring Vnhs can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Telemonitoring Vnhs 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.
Using analytics as competitive advantage
– Telemonitoring Vnhs 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 Telemonitoring at Visiting Nurse Health System - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Telemonitoring Vnhs to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Telemonitoring Vnhs can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Telemonitoring Vnhs 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Telemonitoring Vnhs 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.
Building a culture of innovation
– managers at Telemonitoring Vnhs 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.
Leveraging digital technologies
– Telemonitoring Vnhs 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.
Better consumer reach
– The expansion of the 5G network will help Telemonitoring Vnhs to increase its market reach. Telemonitoring Vnhs 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.
Developing new processes and practices
– Telemonitoring Vnhs 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.
Threats Telemonitoring at Visiting Nurse Health System External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Telemonitoring at Visiting Nurse Health System are -
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. Telemonitoring Vnhs 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 Telemonitoring Vnhs with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Telemonitoring Vnhs 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.
Shortening product life cycle
– it is one of the major threat that Telemonitoring Vnhs 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.
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. Telemonitoring Vnhs needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Telemonitoring at Visiting Nurse Health System, Telemonitoring Vnhs 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 .
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 Telemonitoring Vnhs.
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.
Environmental challenges
– Telemonitoring Vnhs 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. Telemonitoring Vnhs can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Telemonitoring Vnhs 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 Telemonitoring at Visiting Nurse Health System .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Telemonitoring Vnhs 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.
Regulatory challenges
– Telemonitoring Vnhs 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.
Weighted SWOT Analysis of Telemonitoring at Visiting Nurse Health System 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 Telemonitoring at Visiting Nurse Health System 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 Telemonitoring at Visiting Nurse Health System 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 Telemonitoring at Visiting Nurse Health System 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 Telemonitoring at Visiting Nurse Health System 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 Telemonitoring Vnhs needs to make to build a sustainable competitive advantage.