Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version
Describes the efforts of the president of Booz.Allen, a major consulting firm, to understand and improve the way that products, services, and processes are developed and deployed throughout the firm. Proactive management of these processes proves very difficult because of the firm's decentralized decision structure and the firm's cultural predisposition to listen to its existing customers.
Swot Analysis of "Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version" written by Clayton M. Christensen, Bret Baird includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Booz.allen Predisposition facing as an external strategic factors. Some of the topics covered in Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version case study are - Strategic Management Strategies, Customers, Decision making, Managing people, Organizational culture, Product development, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version casestudy better are - – geopolitical disruptions, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs,
there is backlash against globalization, wage bills are increasing, etc
Introduction to SWOT Analysis of Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Booz.allen Predisposition, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Booz.allen Predisposition 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 Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version can be done for the following purposes –
1. Strategic planning using facts provided in Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version case study
2. Improving business portfolio management of Booz.allen Predisposition
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 Booz.allen Predisposition
Strengths Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Booz.allen Predisposition in Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version Harvard Business Review case study are -
Successful track record of launching new products
– Booz.allen Predisposition has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Booz.allen Predisposition 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.
Strong track record of project management
– Booz.allen Predisposition is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version 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.
Highly skilled collaborators
– Booz.allen Predisposition 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 Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Booz.allen Predisposition 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 Booz.allen Predisposition is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Booz.allen Predisposition 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 Clayton M. Christensen, Bret Baird 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.
Ability to lead change in Technology & Operations field
– Booz.allen Predisposition 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 Booz.allen Predisposition in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Booz.allen Predisposition
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Booz.allen Predisposition does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Booz.allen Predisposition has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Booz.allen Predisposition to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Booz.allen Predisposition in the sector have low bargaining power. Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Booz.allen Predisposition to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Booz.allen Predisposition is one of the most innovative firm in sector. Manager in Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Booz.allen Predisposition 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.
Weaknesses Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version are -
Increasing silos among functional specialists
– The organizational structure of Booz.allen Predisposition is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Booz.allen Predisposition needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Booz.allen Predisposition to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Booz.allen Predisposition has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version should strive to include more intangible value offerings along with its core products and services.
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 Booz.allen Predisposition supply chain. Even after few cautionary changes mentioned in the HBR case study - Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Booz.allen Predisposition vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Booz.allen Predisposition 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 strategic competitive environment developments
– As Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version HBR case study mentions - Booz.allen Predisposition 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, Clayton M. Christensen, Bret Baird suggests that, Booz.allen Predisposition 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 operating costs
– Compare to the competitors, firm in the HBR case study Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version 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 Booz.allen Predisposition 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Booz.allen Predisposition 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. Booz.allen Predisposition 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.
Skills based hiring
– The stress on hiring functional specialists at Booz.allen Predisposition has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Interest costs
– Compare to the competition, Booz.allen Predisposition 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.
Need for greater diversity
– Booz.allen Predisposition 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.
Opportunities Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version | 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 Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version are -
Using analytics as competitive advantage
– Booz.allen Predisposition 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 Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Booz.allen Predisposition to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Booz.allen Predisposition 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Booz.allen Predisposition can use these opportunities to build new business models that can help the communities that Booz.allen Predisposition operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Creating value in data economy
– The success of analytics program of Booz.allen Predisposition has opened avenues for new revenue streams for the organization in the industry. This can help Booz.allen Predisposition to build a more holistic ecosystem as suggested in the Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version case study. Booz.allen Predisposition can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Booz.allen Predisposition in the consumer business. Now Booz.allen Predisposition can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Booz.allen Predisposition 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Booz.allen Predisposition 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 Booz.allen Predisposition to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Booz.allen Predisposition can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
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 Booz.allen Predisposition 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.
Loyalty marketing
– Booz.allen Predisposition 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 Booz.allen Predisposition to increase its market reach. Booz.allen Predisposition 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Booz.allen Predisposition in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Booz.allen Predisposition can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version are -
Technology acceleration in Forth Industrial Revolution
– Booz.allen Predisposition has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Booz.allen Predisposition needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Booz.allen Predisposition needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Increasing wage structure of Booz.allen Predisposition
– 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 Booz.allen Predisposition.
High dependence on third party suppliers
– Booz.allen Predisposition 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.
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.
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. Booz.allen Predisposition can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Booz.allen Predisposition 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. Booz.allen Predisposition can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Booz.allen Predisposition in the Technology & Operations sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Booz.allen Predisposition 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 Booz.allen Predisposition 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Booz.allen Predisposition 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 Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Booz.allen Predisposition with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Booz.allen Predisposition 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.
Weighted SWOT Analysis of Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version 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 Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version 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 Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version 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 Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version 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 Cultivating Capabilities to Innovate: Booz.Allen & Hamilton, Chinese Version 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 Booz.allen Predisposition needs to make to build a sustainable competitive advantage.