Case Study Description of Du Pont's Artificial Intelligence Implementation Strategy
Describes Du Pont's attempt to follow a "small is beautiful" type approach toward implementing expert systems technology. Intended to illustrate that there is no "one right way" to implement expert systems and that the small systems approach can be a viable strategy provided that it fits the organization's culture, knowledge profile, and resource structure. Can also be used to illustrate the more general issues associated with end user adoption of new technology.
Swot Analysis of "Du Pont's Artificial Intelligence Implementation Strategy" written by John J. Sviokla, Mark Keil includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pont's Du facing as an external strategic factors. Some of the topics covered in Du Pont's Artificial Intelligence Implementation Strategy case study are - Strategic Management Strategies, Growth strategy, IT, Strategy execution and Technology & Operations.
Some of the macro environment factors that can be used to understand the Du Pont's Artificial Intelligence Implementation Strategy casestudy better are - – increasing household debt because of falling income levels, there is backlash against globalization, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%,
wage bills are increasing, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Du Pont's Artificial Intelligence Implementation Strategy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Du Pont's Artificial Intelligence Implementation Strategy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pont's Du, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pont's Du 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 Du Pont's Artificial Intelligence Implementation Strategy can be done for the following purposes –
1. Strategic planning using facts provided in Du Pont's Artificial Intelligence Implementation Strategy case study
2. Improving business portfolio management of Pont's Du
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 Pont's Du
Strengths Du Pont's Artificial Intelligence Implementation Strategy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pont's Du in Du Pont's Artificial Intelligence Implementation Strategy Harvard Business Review case study are -
Analytics focus
– Pont's Du 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 John J. Sviokla, Mark Keil 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.
High switching costs
– The high switching costs that Pont's Du 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.
Operational resilience
– The operational resilience strategy in the Du Pont's Artificial Intelligence Implementation Strategy 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.
Successful track record of launching new products
– Pont's Du has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pont's Du 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 Pont's Du in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Pont's Du
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Pont's Du does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Pont's Du 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 Du Pont's Artificial Intelligence Implementation Strategy - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Pont's Du digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pont's Du 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.
Sustainable margins compare to other players in Technology & Operations industry
– Du Pont's Artificial Intelligence Implementation Strategy firm has clearly differentiated products in the market place. This has enabled Pont's Du to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Pont's Du to invest into research and development (R&D) and innovation.
Strong track record of project management
– Pont's Du is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Pont's Du in the sector have low bargaining power. Du Pont's Artificial Intelligence Implementation Strategy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pont's Du to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Pont's Du has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Du Pont's Artificial Intelligence Implementation Strategy 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 Du Pont's Artificial Intelligence Implementation Strategy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Du Pont's Artificial Intelligence Implementation Strategy are -
Capital Spending Reduction
– Even during the low interest decade, Pont's Du 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Pont's Du is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Du Pont's Artificial Intelligence Implementation Strategy can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Pont's Du 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 bargaining power of channel partners
– Because of the regulatory requirements, John J. Sviokla, Mark Keil suggests that, Pont's Du 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.
No frontier risks strategy
– After analyzing the HBR case study Du Pont's Artificial Intelligence Implementation Strategy, 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.
Aligning sales with marketing
– It come across in the case study Du Pont's Artificial Intelligence Implementation Strategy 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 Du Pont's Artificial Intelligence Implementation Strategy can leverage the sales team experience to cultivate customer relationships as Pont's Du is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Du Pont's Artificial Intelligence Implementation Strategy 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 Pont's Du 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Pont's Du, firm in the HBR case study Du Pont's Artificial Intelligence Implementation Strategy needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Du Pont's Artificial Intelligence Implementation Strategy, it seems that the employees of Pont's Du 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.
Increasing silos among functional specialists
– The organizational structure of Pont's Du is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Pont's Du needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Pont's Du to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Du Pont's Artificial Intelligence Implementation Strategy HBR case study mentions - Pont's Du 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.
Opportunities Du Pont's Artificial Intelligence Implementation Strategy | 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 Du Pont's Artificial Intelligence Implementation Strategy are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Pont's Du can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Pont's Du can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Pont's Du is facing challenges because of the dominance of functional experts in the organization. Du Pont's Artificial Intelligence Implementation Strategy 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.
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 Pont's Du in the consumer business. Now Pont's Du can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Pont's Du 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 Pont's Du to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Pont's Du 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.
Developing new processes and practices
– Pont's Du 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pont's Du 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Pont's Du 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.
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. Pont's Du 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 Pont's Du 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.
Buying journey improvements
– Pont's Du can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Du Pont's Artificial Intelligence Implementation Strategy 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.
Using analytics as competitive advantage
– Pont's Du 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 Du Pont's Artificial Intelligence Implementation Strategy - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pont's Du to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Pont's Du can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Du Pont's Artificial Intelligence Implementation Strategy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Du Pont's Artificial Intelligence Implementation Strategy are -
High dependence on third party suppliers
– Pont's Du 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.
Increasing wage structure of Pont's Du
– 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 Pont's Du.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Pont's Du 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.
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. Pont's Du can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Pont's Du business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Pont's Du 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.
Shortening product life cycle
– it is one of the major threat that Pont's Du 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 Pont's Du 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.
Environmental challenges
– Pont's Du 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. Pont's Du can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Technology acceleration in Forth Industrial Revolution
– Pont's Du has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Pont's Du needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pont's Du with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Du Pont's Artificial Intelligence Implementation Strategy 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 Du Pont's Artificial Intelligence Implementation Strategy 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 Du Pont's Artificial Intelligence Implementation Strategy 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 Du Pont's Artificial Intelligence Implementation Strategy 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 Du Pont's Artificial Intelligence Implementation Strategy 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 Pont's Du needs to make to build a sustainable competitive advantage.