Process Improvement in Stanford Hospital's Operating Room SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Process Improvement in Stanford Hospital's Operating Room
In June 2004, members of the Material Flow Committee at Stanford Hospital and Clinics were faced with the challenge of implementing important process improvements in the operating room. Though notable progress had been made in the recent past, complaints from surgeons, nurses, and technicians regarding the availability of surgical instrumentation had reached an all-time high. Finding a solution was urgent, but opinions varied widely regarding the best course of action. Some individuals believed that instrumentation sterilization and processing should be adopted as a core competency (and made central to employee training and compensation). Others felt the hospital should invest in additional instruments and information technology to improve efficiencies. A third faction believed that instrumentation issues resulted, in large part, from low morale and a lack of cross-functional camaraderie and teamwork within the operating room. A decision had to be made to devote Stanford's limited time and resources to the solution that would have the greatest, most immediate impact on its operating room effectiveness.
Authors :: Stefanos Zenios, Kate Surman, Elena Pernas-Giz
Swot Analysis of "Process Improvement in Stanford Hospital's Operating Room" written by Stefanos Zenios, Kate Surman, Elena Pernas-Giz includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Instrumentation Operating facing as an external strategic factors. Some of the topics covered in Process Improvement in Stanford Hospital's Operating Room case study are - Strategic Management Strategies, Decision making, Developing employees and Technology & Operations.
Some of the macro environment factors that can be used to understand the Process Improvement in Stanford Hospital's Operating Room casestudy better are - – increasing commodity prices, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels,
technology disruption, there is backlash against globalization, etc
Introduction to SWOT Analysis of Process Improvement in Stanford Hospital's Operating Room
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Process Improvement in Stanford Hospital's Operating Room case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Instrumentation Operating, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Instrumentation Operating 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 Process Improvement in Stanford Hospital's Operating Room can be done for the following purposes –
1. Strategic planning using facts provided in Process Improvement in Stanford Hospital's Operating Room case study
2. Improving business portfolio management of Instrumentation Operating
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 Instrumentation Operating
Strengths Process Improvement in Stanford Hospital's Operating Room | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Instrumentation Operating in Process Improvement in Stanford Hospital's Operating Room Harvard Business Review case study are -
High brand equity
– Instrumentation Operating has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Instrumentation Operating to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Instrumentation Operating 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 Process Improvement in Stanford Hospital's Operating Room HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Instrumentation Operating is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Instrumentation Operating
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Instrumentation Operating does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Process Improvement in Stanford Hospital's Operating Room 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.
Effective Research and Development (R&D)
– Instrumentation Operating 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 Process Improvement in Stanford Hospital's Operating Room - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Instrumentation Operating has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Instrumentation Operating 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.
Superior customer experience
– The customer experience strategy of Instrumentation Operating 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 Instrumentation Operating digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Instrumentation Operating 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.
Low bargaining power of suppliers
– Suppliers of Instrumentation Operating in the sector have low bargaining power. Process Improvement in Stanford Hospital's Operating Room has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Instrumentation Operating to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Technology & Operations industry
– Process Improvement in Stanford Hospital's Operating Room firm has clearly differentiated products in the market place. This has enabled Instrumentation Operating to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Instrumentation Operating to invest into research and development (R&D) and innovation.
Innovation driven organization
– Instrumentation Operating is one of the most innovative firm in sector. Manager in Process Improvement in Stanford Hospital's Operating Room Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Process Improvement in Stanford Hospital's Operating Room | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Process Improvement in Stanford Hospital's Operating Room are -
Slow decision making process
– As mentioned earlier in the report, Instrumentation Operating 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. Instrumentation Operating 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.
Interest costs
– Compare to the competition, Instrumentation Operating 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.
Aligning sales with marketing
– It come across in the case study Process Improvement in Stanford Hospital's Operating Room 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 Process Improvement in Stanford Hospital's Operating Room can leverage the sales team experience to cultivate customer relationships as Instrumentation Operating is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Process Improvement in Stanford Hospital's Operating Room, in the dynamic environment Instrumentation Operating has struggled to respond to the nimble upstart competition. Instrumentation Operating has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Instrumentation Operating, firm in the HBR case study Process Improvement in Stanford Hospital's Operating Room needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Instrumentation Operating 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Instrumentation Operating is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Process Improvement in Stanford Hospital's Operating Room can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Process Improvement in Stanford Hospital's Operating Room, it seems that the employees of Instrumentation Operating don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow to strategic competitive environment developments
– As Process Improvement in Stanford Hospital's Operating Room HBR case study mentions - Instrumentation Operating 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.
Skills based hiring
– The stress on hiring functional specialists at Instrumentation Operating 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.
No frontier risks strategy
– After analyzing the HBR case study Process Improvement in Stanford Hospital's Operating Room, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Opportunities Process Improvement in Stanford Hospital's Operating Room | 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 Process Improvement in Stanford Hospital's Operating Room are -
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. Instrumentation Operating can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Instrumentation Operating 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 Instrumentation Operating to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Instrumentation Operating can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Process Improvement in Stanford Hospital's Operating Room 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Instrumentation Operating 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Instrumentation Operating can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Instrumentation Operating can use these opportunities to build new business models that can help the communities that Instrumentation Operating operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Manufacturing automation
– Instrumentation Operating 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 Instrumentation Operating 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Instrumentation Operating 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. Instrumentation Operating can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Instrumentation Operating can develop new processes and procedures in Technology & Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Instrumentation Operating is facing challenges because of the dominance of functional experts in the organization. Process Improvement in Stanford Hospital's Operating Room case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Instrumentation Operating 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.
Threats Process Improvement in Stanford Hospital's Operating Room External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Process Improvement in Stanford Hospital's Operating Room are -
Regulatory challenges
– Instrumentation Operating 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.
Shortening product life cycle
– it is one of the major threat that Instrumentation Operating is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Instrumentation Operating business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Instrumentation Operating 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.
Technology acceleration in Forth Industrial Revolution
– Instrumentation Operating has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Instrumentation Operating 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.
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. Instrumentation Operating 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. Instrumentation Operating can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Instrumentation Operating 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. Instrumentation Operating 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, Instrumentation Operating 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 Process Improvement in Stanford Hospital's Operating Room .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Instrumentation Operating with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Instrumentation Operating
– 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 Instrumentation Operating.
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 Instrumentation Operating in the Technology & Operations sector and impact the bottomline 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 Instrumentation Operating.
Weighted SWOT Analysis of Process Improvement in Stanford Hospital's Operating Room 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 Process Improvement in Stanford Hospital's Operating Room 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 Process Improvement in Stanford Hospital's Operating Room 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 Process Improvement in Stanford Hospital's Operating Room 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 Process Improvement in Stanford Hospital's Operating Room 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 Instrumentation Operating needs to make to build a sustainable competitive advantage.