Information Services in the U.S. Economy: Value, Jobs, and Management Implications SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Information Services in the U.S. Economy: Value, Jobs, and Management Implications
It is well known that almost all of the largest economies in the world are already dominated by services. What may be less well known is that many are also evolving towards becoming information economies in the sense of both value added (GNP) and jobs. While this evolution is less advanced in some countries, the U.S. is already well past the 60% mark in terms of economic value added. This article explores the confluence of these two trends by examining the double dichotomy of products versus services and information versus material (non-information) outputs, thus dividing the economy into four super-sectors. The data reveal that the U.S. job market is dominated by information work and that the largest part of the U.S. economy in terms of GNP value added is the "information services" super-sector. The largest job share in terms of the number of jobs is in the "material or non-information" jobs in services, but the largest share of the wage bill is in information-related jobs in services. This article discusses the reasons behind these trends, identifies major differences between information and non-information sectors, and examines the implications for management strategy in the information economy.
Authors :: Uday Karmarkar, Uday M Apte, Hiranya K Nath
Swot Analysis of "Information Services in the U.S. Economy: Value, Jobs, and Management Implications" written by Uday Karmarkar, Uday M Apte, Hiranya K Nath includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Information Jobs facing as an external strategic factors. Some of the topics covered in Information Services in the U.S. Economy: Value, Jobs, and Management Implications case study are - Strategic Management Strategies, Global strategy, Innovation and Technology & Operations.
Some of the macro environment factors that can be used to understand the Information Services in the U.S. Economy: Value, Jobs, and Management Implications casestudy better are - – wage bills are increasing, technology disruption, 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, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Information Services in the U.S. Economy: Value, Jobs, and Management Implications
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Information Services in the U.S. Economy: Value, Jobs, and Management Implications case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Information Jobs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Information Jobs 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 Information Services in the U.S. Economy: Value, Jobs, and Management Implications can be done for the following purposes –
1. Strategic planning using facts provided in Information Services in the U.S. Economy: Value, Jobs, and Management Implications case study
2. Improving business portfolio management of Information Jobs
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 Information Jobs
Strengths Information Services in the U.S. Economy: Value, Jobs, and Management Implications | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Information Jobs in Information Services in the U.S. Economy: Value, Jobs, and Management Implications Harvard Business Review case study are -
Diverse revenue streams
– Information Jobs is present in almost all the verticals within the industry. This has provided firm in Information Services in the U.S. Economy: Value, Jobs, and Management Implications 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.
Strong track record of project management
– Information Jobs is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Information Jobs 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 Information Services in the U.S. Economy: Value, Jobs, and Management Implications - 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 Information Jobs digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Information Jobs 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.
Highly skilled collaborators
– Information Jobs 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 Information Services in the U.S. Economy: Value, Jobs, and Management Implications HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Information Jobs has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Information Services in the U.S. Economy: Value, Jobs, and Management Implications Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High brand equity
– Information Jobs has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Information Jobs to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Information Jobs
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Information Jobs does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Information Jobs 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.
Operational resilience
– The operational resilience strategy in the Information Services in the U.S. Economy: Value, Jobs, and Management Implications 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 lead change in Technology & Operations field
– Information Jobs is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Information Jobs in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Information Jobs 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 Information Jobs is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Information Services in the U.S. Economy: Value, Jobs, and Management Implications Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Information Services in the U.S. Economy: Value, Jobs, and Management Implications | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Information Services in the U.S. Economy: Value, Jobs, and Management Implications are -
Interest costs
– Compare to the competition, Information Jobs 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.
Increasing silos among functional specialists
– The organizational structure of Information Jobs is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Information Jobs needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Information Jobs to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Information Jobs 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.
Lack of clear differentiation of Information Jobs products
– To increase the profitability and margins on the products, Information Jobs needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Information Services in the U.S. Economy: Value, Jobs, and Management Implications, in the dynamic environment Information Jobs has struggled to respond to the nimble upstart competition. Information Jobs has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Information Services in the U.S. Economy: Value, Jobs, and Management Implications, it seems that the employees of Information Jobs 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.
Aligning sales with marketing
– It come across in the case study Information Services in the U.S. Economy: Value, Jobs, and Management Implications 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 Information Services in the U.S. Economy: Value, Jobs, and Management Implications can leverage the sales team experience to cultivate customer relationships as Information Jobs is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Information Services in the U.S. Economy: Value, Jobs, and Management Implications HBR case study mentions - Information Jobs 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.
Capital Spending Reduction
– Even during the low interest decade, Information Jobs 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.
Need for greater diversity
– Information Jobs 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 Information Jobs supply chain. Even after few cautionary changes mentioned in the HBR case study - Information Services in the U.S. Economy: Value, Jobs, and Management Implications, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Information Jobs vulnerable to further global disruptions in South East Asia.
Opportunities Information Services in the U.S. Economy: Value, Jobs, and Management Implications | 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 Information Services in the U.S. Economy: Value, Jobs, and Management Implications are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Information Jobs 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.
Using analytics as competitive advantage
– Information Jobs 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 Information Services in the U.S. Economy: Value, Jobs, and Management Implications - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Information Jobs to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Information Jobs can use these opportunities to build new business models that can help the communities that Information Jobs operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Loyalty marketing
– Information Jobs 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.
Better consumer reach
– The expansion of the 5G network will help Information Jobs to increase its market reach. Information Jobs 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.
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. Information Jobs can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Information Jobs in the consumer business. Now Information Jobs can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Information Jobs can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Information Services in the U.S. Economy: Value, Jobs, and Management Implications 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. Information Jobs can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Information Jobs can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Information Jobs can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Information Jobs 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Information Jobs 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.
Threats Information Services in the U.S. Economy: Value, Jobs, and Management Implications External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Information Services in the U.S. Economy: Value, Jobs, and Management Implications are -
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 Information Jobs business can come under increasing regulations regarding data privacy, data security, etc.
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. Information Jobs needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Information Jobs 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Information Jobs 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.
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 Information Jobs.
Technology acceleration in Forth Industrial Revolution
– Information Jobs has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Information Jobs 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.
Environmental challenges
– Information Jobs 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. Information Jobs can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Shortening product life cycle
– it is one of the major threat that Information Jobs is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Information Jobs with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Information Jobs 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.
Regulatory challenges
– Information Jobs needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.
High dependence on third party suppliers
– Information Jobs 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.
Weighted SWOT Analysis of Information Services in the U.S. Economy: Value, Jobs, and Management Implications 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 Information Services in the U.S. Economy: Value, Jobs, and Management Implications 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 Information Services in the U.S. Economy: Value, Jobs, and Management Implications 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 Information Services in the U.S. Economy: Value, Jobs, and Management Implications 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 Information Services in the U.S. Economy: Value, Jobs, and Management Implications 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 Information Jobs needs to make to build a sustainable competitive advantage.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Information Services in the U.S. Economy: Value, Jobs, and Management Implications
