American Management Systems, Inc.: The Knowledge Centers SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of American Management Systems, Inc.: The Knowledge Centers
Senior management at AMS, a business and information technology consulting company, is growing at 28% annually and assimilating 1,800 new hires a year. AMS has recently instituted a new knowledge management strategy, a group of six knowledge centers (virtual communities of experts) each concerned with one of the company's core disciplines. The initiative is intended to help AMS reach its goal of leadership, as well as to help assimilate the many new consultants. How well does the company's newest knowledge management infrastructure work? The case deals with crucial issues of knowledge transfer and knowledge organization, and innovations in the field of knowledge management.
Swot Analysis of "American Management Systems, Inc.: The Knowledge Centers" written by Dorothy Leonard, Sylvia Sensiper includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Knowledge Ams facing as an external strategic factors. Some of the topics covered in American Management Systems, Inc.: The Knowledge Centers case study are - Strategic Management Strategies, IT, Managing people and Technology & Operations.
Some of the macro environment factors that can be used to understand the American Management Systems, Inc.: The Knowledge Centers casestudy better are - – cloud computing is disrupting traditional business models, increasing energy prices, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , geopolitical disruptions, increasing commodity prices, central banks are concerned over increasing inflation,
increasing transportation and logistics costs, there is backlash against globalization, etc
Introduction to SWOT Analysis of American Management Systems, Inc.: The Knowledge Centers
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in American Management Systems, Inc.: The Knowledge Centers case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Knowledge Ams, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Knowledge Ams 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 American Management Systems, Inc.: The Knowledge Centers can be done for the following purposes –
1. Strategic planning using facts provided in American Management Systems, Inc.: The Knowledge Centers case study
2. Improving business portfolio management of Knowledge Ams
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 Knowledge Ams
Strengths American Management Systems, Inc.: The Knowledge Centers | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Knowledge Ams in American Management Systems, Inc.: The Knowledge Centers Harvard Business Review case study are -
High switching costs
– The high switching costs that Knowledge Ams 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.
Cross disciplinary teams
– Horizontal connected teams at the Knowledge Ams 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.
Learning organization
- Knowledge Ams 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 Knowledge Ams is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in American Management Systems, Inc.: The Knowledge Centers Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Knowledge Ams digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Knowledge Ams 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.
Diverse revenue streams
– Knowledge Ams is present in almost all the verticals within the industry. This has provided firm in American Management Systems, Inc.: The Knowledge Centers 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.
Ability to lead change in Technology & Operations field
– Knowledge Ams 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 Knowledge Ams in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the American Management Systems, Inc.: The Knowledge Centers 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
– Knowledge Ams 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 American Management Systems, Inc.: The Knowledge Centers HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Knowledge Ams has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Knowledge Ams 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.
Ability to recruit top talent
– Knowledge Ams is one of the leading recruiters in the industry. Managers in the American Management Systems, Inc.: The Knowledge Centers 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 Knowledge Ams in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Knowledge Ams 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 Dorothy Leonard, Sylvia Sensiper 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.
Weaknesses American Management Systems, Inc.: The Knowledge Centers | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of American Management Systems, Inc.: The Knowledge Centers are -
Products dominated business model
– Even though Knowledge Ams 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 - American Management Systems, Inc.: The Knowledge Centers should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Knowledge Ams is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Knowledge Ams needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Knowledge Ams to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the American Management Systems, Inc.: The Knowledge Centers 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 Knowledge Ams has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Knowledge Ams 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study American Management Systems, Inc.: The Knowledge Centers, in the dynamic environment Knowledge Ams has struggled to respond to the nimble upstart competition. Knowledge Ams has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study American Management Systems, Inc.: The Knowledge Centers 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 Knowledge Ams 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Knowledge Ams is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study American Management Systems, Inc.: The Knowledge Centers can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study American Management Systems, Inc.: The Knowledge Centers 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 American Management Systems, Inc.: The Knowledge Centers can leverage the sales team experience to cultivate customer relationships as Knowledge Ams is planning to shift buying processes online.
Lack of clear differentiation of Knowledge Ams products
– To increase the profitability and margins on the products, Knowledge Ams needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Knowledge Ams supply chain. Even after few cautionary changes mentioned in the HBR case study - American Management Systems, Inc.: The Knowledge Centers, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Knowledge Ams vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Knowledge Ams, firm in the HBR case study American Management Systems, Inc.: The Knowledge Centers needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities American Management Systems, Inc.: The Knowledge Centers | 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 American Management Systems, Inc.: The Knowledge Centers are -
Manufacturing automation
– Knowledge Ams 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.
Buying journey improvements
– Knowledge Ams can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. American Management Systems, Inc.: The Knowledge Centers 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Knowledge Ams can use these opportunities to build new business models that can help the communities that Knowledge Ams operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Knowledge Ams is facing challenges because of the dominance of functional experts in the organization. American Management Systems, Inc.: The Knowledge Centers 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.
Developing new processes and practices
– Knowledge Ams 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.
Creating value in data economy
– The success of analytics program of Knowledge Ams has opened avenues for new revenue streams for the organization in the industry. This can help Knowledge Ams to build a more holistic ecosystem as suggested in the American Management Systems, Inc.: The Knowledge Centers case study. Knowledge Ams can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Knowledge Ams can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Knowledge Ams to increase its market reach. Knowledge Ams 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.
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 Knowledge Ams 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Knowledge Ams 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, American Management Systems, Inc.: The Knowledge Centers, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Knowledge Ams in the consumer business. Now Knowledge Ams can target international markets with far fewer capital restrictions requirements than the existing system.
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. Knowledge Ams can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Knowledge Ams 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 American Management Systems, Inc.: The Knowledge Centers External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study American Management Systems, Inc.: The Knowledge Centers are -
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.
Shortening product life cycle
– it is one of the major threat that Knowledge Ams 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 Knowledge Ams with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Knowledge Ams 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 Knowledge Ams
– 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 Knowledge Ams.
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 Knowledge Ams business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Knowledge Ams 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.
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 Knowledge Ams in the Technology & Operations sector and impact the bottomline of the organization.
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. Knowledge Ams 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.
High dependence on third party suppliers
– Knowledge Ams 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.
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 Knowledge Ams.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study American Management Systems, Inc.: The Knowledge Centers, Knowledge Ams 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 .
Environmental challenges
– Knowledge Ams 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. Knowledge Ams can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Weighted SWOT Analysis of American Management Systems, Inc.: The Knowledge Centers 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 American Management Systems, Inc.: The Knowledge Centers 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 American Management Systems, Inc.: The Knowledge Centers 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 American Management Systems, Inc.: The Knowledge Centers 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 American Management Systems, Inc.: The Knowledge Centers 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 Knowledge Ams needs to make to build a sustainable competitive advantage.
