Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges
Presents the outcome of Air Products ICON decentralization projects. New issues are explored, including the challenges of having a decentralized MIS staff, global network, client/server architecture, new data center issues, outsourcing, a new highly strategic customer interface, object-oriented programming (OOPS), and the future of the MIS organization. A rewritten version of two earlier cases.
Swot Analysis of "Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges" written by Richard L. Nolan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mis Architecture facing as an external strategic factors. Some of the topics covered in Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges case study are - Strategic Management Strategies, IT, Networking, Operations management, Organizational structure and Technology & Operations.
Some of the macro environment factors that can be used to understand the Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges casestudy better are - – wage bills are increasing, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, increasing energy prices, increasing government debt because of Covid-19 spendings,
increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mis Architecture, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mis Architecture 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 Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges can be done for the following purposes –
1. Strategic planning using facts provided in Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges case study
2. Improving business portfolio management of Mis Architecture
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 Mis Architecture
Strengths Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mis Architecture in Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges Harvard Business Review case study are -
Successful track record of launching new products
– Mis Architecture has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mis Architecture 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.
Operational resilience
– The operational resilience strategy in the Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges 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.
Ability to recruit top talent
– Mis Architecture is one of the leading recruiters in the industry. Managers in the Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Mis Architecture in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Mis Architecture 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 Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Mis Architecture 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.
Diverse revenue streams
– Mis Architecture is present in almost all the verticals within the industry. This has provided firm in Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges 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.
Learning organization
- Mis Architecture 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 Mis Architecture is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Mis Architecture in the sector have low bargaining power. Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mis Architecture to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Mis Architecture
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mis Architecture does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Mis Architecture is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Mis Architecture has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges 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 Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges are -
Capital Spending Reduction
– Even during the low interest decade, Mis Architecture 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges 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 Mis Architecture 's lucrative customers.
Need for greater diversity
– Mis Architecture 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 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 Mis Architecture supply chain. Even after few cautionary changes mentioned in the HBR case study - Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mis Architecture vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Mis Architecture products
– To increase the profitability and margins on the products, Mis Architecture needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges 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 Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges can leverage the sales team experience to cultivate customer relationships as Mis Architecture is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Richard L. Nolan suggests that, Mis Architecture 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges 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 Mis Architecture has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Mis Architecture 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. Mis Architecture 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Mis Architecture 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 cash cycle compare to competitors
Mis Architecture 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.
Opportunities Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges | 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 Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges are -
Using analytics as competitive advantage
– Mis Architecture 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 Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mis Architecture to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Mis Architecture in the consumer business. Now Mis Architecture can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mis Architecture 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, Mis Architecture can use these opportunities to build new business models that can help the communities that Mis Architecture operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Better consumer reach
– The expansion of the 5G network will help Mis Architecture to increase its market reach. Mis Architecture 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mis Architecture is facing challenges because of the dominance of functional experts in the organization. Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mis Architecture 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, Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Mis Architecture has opened avenues for new revenue streams for the organization in the industry. This can help Mis Architecture to build a more holistic ecosystem as suggested in the Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges case study. Mis Architecture can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Mis Architecture 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.
Manufacturing automation
– Mis Architecture 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.
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. Mis Architecture can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mis Architecture 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.
Loyalty marketing
– Mis Architecture 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.
Threats Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges are -
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 Mis Architecture.
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.
Consumer confidence and its impact on Mis Architecture 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.
Increasing wage structure of Mis Architecture
– 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 Mis Architecture.
Shortening product life cycle
– it is one of the major threat that Mis Architecture is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Mis Architecture 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. Mis Architecture can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges, Mis Architecture 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mis Architecture with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Mis Architecture needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Mis Architecture high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Stagnating economy with rate increase
– Mis Architecture 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.
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. Mis Architecture can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Mis Architecture will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges 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 Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges 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 Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges 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 Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges 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 Air Products and Chemicals, Inc.: IT Organization and Architecture Challenges 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 Mis Architecture needs to make to build a sustainable competitive advantage.
