Case Study Description of Sapient Consulting: Enriching Experience Using Hybrid Agile Approach
In December 2005, Sapient Consulting signed a fixed-price contract with U.S.-based Global HR Outsourcing Inc. to design a human resources portal for its international customers. Sapient's senior manager of project management, who was based in India, had been handed the project with full faith that it would not only be delivered on time but within the fixed price and using the new agile hybrid methodology. The client wanted the portal built for them and insisted that the project be delivered in a phased manner and with functionality approved by them. Thus, the challenge was to meet the needs of the client while maintaining the margins for the organization.
Swot Analysis of "Sapient Consulting: Enriching Experience Using Hybrid Agile Approach" written by Aparna Raman, Sangeeta Shah Bharadwaj includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sapient Agile facing as an external strategic factors. Some of the topics covered in Sapient Consulting: Enriching Experience Using Hybrid Agile Approach case study are - Strategic Management Strategies, IT and Technology & Operations.
Some of the macro environment factors that can be used to understand the Sapient Consulting: Enriching Experience Using Hybrid Agile Approach casestudy better are - – there is backlash against globalization, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, increasing commodity prices, wage bills are increasing, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%,
competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Sapient Consulting: Enriching Experience Using Hybrid Agile Approach
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sapient Consulting: Enriching Experience Using Hybrid Agile Approach case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sapient Agile, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sapient Agile 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 Sapient Consulting: Enriching Experience Using Hybrid Agile Approach can be done for the following purposes –
1. Strategic planning using facts provided in Sapient Consulting: Enriching Experience Using Hybrid Agile Approach case study
2. Improving business portfolio management of Sapient Agile
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 Sapient Agile
Strengths Sapient Consulting: Enriching Experience Using Hybrid Agile Approach | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sapient Agile in Sapient Consulting: Enriching Experience Using Hybrid Agile Approach Harvard Business Review case study are -
High switching costs
– The high switching costs that Sapient Agile 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.
Organizational Resilience of Sapient Agile
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Sapient Agile does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Sapient Agile 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 Sapient Consulting: Enriching Experience Using Hybrid Agile Approach HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Sapient Agile has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Sapient Consulting: Enriching Experience Using Hybrid Agile Approach 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.
Ability to recruit top talent
– Sapient Agile is one of the leading recruiters in the industry. Managers in the Sapient Consulting: Enriching Experience Using Hybrid Agile Approach are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Sapient Agile 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 Sapient Agile is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Sapient Consulting: Enriching Experience Using Hybrid Agile Approach Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Sapient Agile is present in almost all the verticals within the industry. This has provided firm in Sapient Consulting: Enriching Experience Using Hybrid Agile Approach case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Cross disciplinary teams
– Horizontal connected teams at the Sapient Agile 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.
Effective Research and Development (R&D)
– Sapient Agile 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 Sapient Consulting: Enriching Experience Using Hybrid Agile Approach - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Sapient Agile in the sector have low bargaining power. Sapient Consulting: Enriching Experience Using Hybrid Agile Approach has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Sapient Agile to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Sapient Agile has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Sapient Agile 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Sapient Agile digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sapient Agile 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.
Weaknesses Sapient Consulting: Enriching Experience Using Hybrid Agile Approach | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sapient Consulting: Enriching Experience Using Hybrid Agile Approach are -
Low market penetration in new markets
– Outside its home market of Sapient Agile, firm in the HBR case study Sapient Consulting: Enriching Experience Using Hybrid Agile Approach 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, Sapient Agile 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 strategic competitive environment developments
– As Sapient Consulting: Enriching Experience Using Hybrid Agile Approach HBR case study mentions - Sapient Agile takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High bargaining power of channel partners
– Because of the regulatory requirements, Aparna Raman, Sangeeta Shah Bharadwaj suggests that, Sapient Agile 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 Sapient Consulting: Enriching Experience Using Hybrid Agile Approach 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 Sapient Agile has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Sapient Consulting: Enriching Experience Using Hybrid Agile Approach 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 Sapient Agile 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Sapient Agile 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, Sapient Agile is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Sapient Consulting: Enriching Experience Using Hybrid Agile Approach can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Sapient Agile 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 Sapient Consulting: Enriching Experience Using Hybrid Agile Approach 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 Sapient Consulting: Enriching Experience Using Hybrid Agile Approach can leverage the sales team experience to cultivate customer relationships as Sapient Agile is planning to shift buying processes online.
Lack of clear differentiation of Sapient Agile products
– To increase the profitability and margins on the products, Sapient Agile needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Sapient Consulting: Enriching Experience Using Hybrid Agile Approach | 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 Sapient Consulting: Enriching Experience Using Hybrid Agile Approach are -
Buying journey improvements
– Sapient Agile can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Sapient Consulting: Enriching Experience Using Hybrid Agile Approach 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.
Better consumer reach
– The expansion of the 5G network will help Sapient Agile to increase its market reach. Sapient Agile 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.
Manufacturing automation
– Sapient Agile 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.
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. Sapient Agile 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. Sapient Agile 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sapient Agile can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Sapient Agile 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.
Leveraging digital technologies
– Sapient Agile 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.
Loyalty marketing
– Sapient Agile 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.
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 Sapient Agile in the consumer business. Now Sapient Agile can target international markets with far fewer capital restrictions requirements than the existing system.
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 Sapient Agile 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sapient Agile can use these opportunities to build new business models that can help the communities that Sapient Agile operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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. Sapient Agile can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Sapient Agile 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.
Threats Sapient Consulting: Enriching Experience Using Hybrid Agile Approach External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sapient Consulting: Enriching Experience Using Hybrid Agile Approach are -
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. Sapient Agile needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sapient Agile 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 Sapient Consulting: Enriching Experience Using Hybrid Agile Approach .
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. Sapient Agile can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Sapient Agile in the Technology & Operations sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Sapient Consulting: Enriching Experience Using Hybrid Agile Approach, Sapient Agile 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 .
High dependence on third party suppliers
– Sapient Agile 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.
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 Sapient Agile business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Sapient Agile
– 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 Sapient Agile.
Environmental challenges
– Sapient Agile 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. Sapient Agile can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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. Sapient Agile 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Sapient Agile with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Sapient Agile has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Sapient Agile 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.
Weighted SWOT Analysis of Sapient Consulting: Enriching Experience Using Hybrid Agile Approach 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 Sapient Consulting: Enriching Experience Using Hybrid Agile Approach 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 Sapient Consulting: Enriching Experience Using Hybrid Agile Approach 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 Sapient Consulting: Enriching Experience Using Hybrid Agile Approach 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 Sapient Consulting: Enriching Experience Using Hybrid Agile Approach 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 Sapient Agile needs to make to build a sustainable competitive advantage.